SK Hynix invests $38B in Korea chip fab expansion

SK Hynix said its board approved a combined investment of 54 trillion won ($38 billion) on Friday to build two new factories for DRAM and NAND Flash chips. The spending is part of a mid- to long-term investment plan of 1.1 quadrillion won announced in June. The board assigned 35.2 trillion won for a second factory, Y2, in a chip complex in Yongin, Gyeonggi, and 19.1 trillion won for the M17 fab in Cheongju, North Chungcheong. A spokesperson said the decision follows Chairman Chey Tae-won's push to fast-track fab expansions in those locations. Construction for the Y2 factory is scheduled to begin in July of next year, with its first clean room set to open in June 2029. The facility will produce next-generation DRAM, including high bandwidth memory. The M17 facility in Cheongju will produce NAND flash chips for enterprise solid-state drives targeting AI data centers, with construction starting in February of next year and a first clean room opening in December 2028. An SK Hynix representative said the investment aims to ensure the company does not miss opportunities as the market grows and to establish itself as a key AI infrastructure partner contributing to global supply chain stability.